Show 4A The Salt Lake Tribune January Thursday 29 1987 Triad Files for Chapter Triad Center Salt Lake International Center Triad Utah AK Houston Properties NV AK Florida Properties Inc and Triad Hotel Associates Triad America is the US holding company of Adnan Khashoggi The company has been beseiged by creditors for more than a year and more than 40 lawsuits have been filed against the company and its subsidiaries The company owns the Triad Center in downtown Salt Lake City the Continued From Aiitclgde First Security Bank of Utah rHv which has about $14 million in loans to the company and Zions First National Bank which has about $5 rwjlion in loans 'Numerous local contractors including the architect firm of Edwards and Daniels Associates are among the unsecured creditors triad America said the following subsidiaries filed for reorganization: Triad Properties Corp Newedge -l Salt Lake International Center west of Salt Lake International Airport and the Sheraton Triad Hotel and Towers 255 S West Temple The stalled Triad Center once was billed as “the largest undertaking of its kind in the area’s history” and Mr Khashoggi once was billed as “The Richest Man in the World” A threat to Triad America perhaps greater than Crest seizing the stock of Triad Properties however may have come from Aetna which guar 11 Reorganization anteed various loans to Triad America and its Newedge subsidiary Aetna’s unsecured debt to Triad America Newedge and various other companies connected to Mr Khashoggi totals almost $80 million according to a source close to Triad Newedge owns the stock of Edging-to- n Oil Company Inc — a profitable refiner and marketer of petroleum products based in Long Beach Edgington is is considered one of Triad’s few assets that is not heavily mortgaged Aetna had guaranteed a $15 million loan from Surety Life Insurance Co d to Newedge according to Mark executive chief and president officer of Edgington Newedge missed a December payment on the loan and Aetna obtained a court order placing the stock of Edgington in an escrow account a few weeks ago New-guar- A court hearing on Aetna’s request that it receive possession of the stock as collateral for the loan was scheduled for Feb 9 Mr Newguard said Mr Khashoggi and Donald Fraser Triad’s president and chief executive officer are directors and major stockholders of the company Mr Khashoggi was named chairman of Skyhigh Nov 13 when the company announced it had entered into an agreement to purchase Edgington Triad had pledged to use the proceeds to pay creditors But Sheraton filed a lawsuit in US District Court Nov 8 seeking to block the sale and seeking payment of $10 million loan guarantee from Triad America Sheraton alleged the sale of Edgington to a company in which Mr Khashoggi and Mr Fraser were major stockholders was designed to defraud creditors Triad America illustration shows bold plans the company for project in downtown Salt Lake City The 30-ac- re dream began to crumble after ground breaking for d story office structure center which was never built 35-ha- Many Businesses Glad Chapter By Joe Rolando Tribune Business Writer "the local business community’s reaction Wednesday to Triad America Corp’s filing for Chapter 11 bankruptcy in Los Angeles ranged from disappointment to “It’s about time” But if there is one thing all those interviewed seemed to agree about it wab that one group is just as much a victim of Triad's financial woes as the company's creditors They are the retailers who leased space at the Triad Center on the belief that their businesses would prosper Fred S Ball president of the Salt Lake Area Chamber of Commerce said “I just hope the Triad Center is continued There just has been no foot traffic there since Triad’s financial problems began The problem is that many people assumed wrongly that those retail stores were closed” Mr Ball said while he was disappointed Triad filed for bankruptcy he was not surprised He added “Chapter 11 indicates the developer’s interest in continuing the project I’m pleased that something has happened because the worst thing that could happen is for everything at Triad to remain status quo” But Mr Ball quickly pointed out that people shouldn’t think there is Lottery Craps Out Again: Panel Votes to Leave Proposal Tabled Barring an appeal to the full Utah House this session’s state lottery proposal is as good as dead Rep Arlo James conceded Wednesday The Kearns Democrat failed to persuade the House Revenue and Taxation Committee to void its n last week on tabling his constitutional amendment to sanction a 1988 statewide ballot question on a ac-tjo- lottery James said committee members had denied the rest of the 1 Rep Legislature the chance to put the i$sue before Utah’s electorate He again alluded to opinion polls that indicate voters overwhelmingly tjant a chance to choose Last week Gov Norm Bangerter aold reporters that while he op- a lottery he wouldn’t mind if ‘ joses Voters were eventually given the ipJortunity i to decide Like last year Rep James said s he still may seek floor off the to measure the support yank committee’s table for a vote by the full polity House members rejected it by a large margin in 1986 This year Rep James tailored his resolution to the financial needs of education proposing that 51 percent of all lottery proceeds go to public schools And like last year he said he was willing again to carry the issue on an informal citizens’ petition to amass political “leverage” with two-third- legislators Following the 1986 session Rep James collected more than 27000 signatures from lottery supporters reflecting 42 percent Utah’s voting population Only the Legislature can authorize ballot questions modifying the Utah Constitution ruling out any chance of a direct citizens’ lottery initiative Sheraton loaned Triad Hotel Associates $152 million when it purchase the Sheraton Triad Hotel and Towers Finally Happened should have been a little patient” Stephen Anderson general manger of La Morena Cafe a Mexican restaurant which likely has attained the status of anchor business at Triad Center said he had heard Triad planned to file “But if I was them I would have done so a lot earlier I think it is necessary” Mr Anderson said La Morena is one of only eight businesses which has not moved from Triad Center in the last year But he said he knows of “two or three others” which will be moving in the next 60 days He said despite Triad’s problems both La Morena and Read Ink a bookstore plan to remain La Morena is a joint venture of the Salt Lake Catholic Diocese and Triad America Tammy and Dee McBride opened the gift shop Bear Facts one of the first businesses at Triad Center in 1984 But in November they decided to move the store to the Ogden City Mall where business was better Tammy observed “We knew Triad Center was not going anywhere unless someone bought it and put a lot of money into it And if they did that it would take two or three years before Triad Center's reputation would im- prove" leaders were braced to call a Legislative Management Committee meeting soon after legal counsel analyzes where the Legislature may fit in A-- who are paid with state money CWlege professors are 1‘It seems to me there are plenty of pepple potential defendants in line nhead of me” said Rep White “I feel like I’m being singled out but for Jvfjat purpose I don’t know” Meanwhile GOP and Democratic Jkpr Jhit No Action Is Legislative staff may recommend that leaders file a brief with the court to officially convey the Legislature's position that it has the constitutional right to seat anyone it deems eligible Jan 12's vote on Reps Rose and Evans and the routine swearing in of By Carol Sisco Tribune Social Issues Writer Utah’s human needs can’t be met without at least a $177 million tax increase a legislative committee decided Wednesday “We have a human need the welfare of the people in the state of Utah" said Rep Gene Davis Lake City as he moved to add $177 million in state dollars to social ser lt vices budgets at the Social Services and Health Appropriations Subcommittee hearing Committee Ervin M Skousen Lake City said he completely supports the motion but questioned what must be cut if the Executive Appropriations Committee doesn’t agree with the plan “Let’s not start talking about defeat until we’ve had a chance to win” lt responded Sen: Frances Farley Lake City to thunderous applause from a packed hearing room During the past three weeks committee members stayed within the legislative fiscal analyst's recommendations as they approved Social Services Department division budgets But Wednesday when they started voting on building blocks that will re- - lt Stronger Nepotism Law Passes Panel Faces Full House Vote A bill to stiffen the state's nepotism law forbidding public officials from hiring relatives won approval Wednesday in the House Business and Labor Committee The measure already passed by the Senate faces only a final vote in the House of Representatives Under current law it’s unlawful for any person on a public-fundejob “to employ appoint or vote for" family members to fill public jobs The ban on relationships extends to The proposed law would also bar recommending a relative The amendment is an attempt to arrest a practice where a public officer may suggest the hiring of a relative to a subordinate or to a supervisor in a different government department or agency explained the sponsor Sen Lyle Hillyard the vagueness in the current nepotism law he said Current law provides an exception to the nepotism ban if a relative is the only person available or qualified for the job Rep White would serve to demonstrate that stance M Gay Taylor the Legislature's chief counsel said any direct representation by her or her colleagues would depend on whether any sundry issues surface and "how they may be framed" the session’s first day she issued a formal opinion that concluded seating Reps Evans and Rose was On Panel Weighs School Districts’ Consolidation quality v The sponsor of House Bill 23 Rep said 20m Burningham bis bill would reduce the state’s 40 iocal districts to 29 or one district Jier county Arguments for and against the measure were presented Wednesday before a packed meeting of the House Education Standing Committee $ No decision on furwording the bill the House floor or tabling it was to jnade It will be taken up again by the 'cbmmittoe in its next meeting Backers of the measure said it would reduce administrative costs unconstitutional under the article But she could still be in position to argue that the Legislature can set its own eligibilities for service Richard Strong director of the General Legislative Research a Counsel Office said there were several matters yet unresolved regarding the Legislature’s involvement one being whether Rep White would be reimbursed for her legal costs for burgeoning student populations d Opponents said consolidation would deny citizens a say in their local affairs that the savings and benefits of consolidation were illusory and that the bill is flawed because it would retain some of the small districts its backers claim are not Rep Burningham who has sponsored similar legislation in the past said the state’s economic situation has compelled him to again take up the school cause “It’s economical We’re talking about not funding other crucial things We can immediately save $456900 in state admimstiative cost-breducing the number of districts to state-mandate- cost-effecti- district-consolidatio- n The temporary restraining order also required Triad to obtain Sheraton’s approval for any transaction involving more than $250000 "It prohibited us from dealing with creditors such as Aetna and settling with them because if it was over $250000 we had to pass it by Sheraton” Mr Miller said Joseph Hepworth Sheraton’s attorney said the bankruptcy filing was a surprise Triad America’s financial problems however were reaching a crescendo in the past weeks Skyhigh announced Jan 12 that it was unable to raise the cash needed to acquire Edgington by privately selling its stock to investors and the price of its stock has crumbled since Sheraton obtained the temporary restraining order Skyhigh and Triad America issued a press release Friday announcing the planned sale of Edgington had been cancelled Triad America said Friday it had instructed its investment banker to find a buyer for Edgington who was not affiliated with Triad and who would pay all cash ' Triad America also was threatened with a foreclosure action by Travelers — which had a $38 million first mortgage on the Triad Center and a $235 million mortgage on four buildings at the Salt Lake International Center A hearing was scheduled for Friday on Travelers’ request for a court appointed receiver to take control of the Triad Center and four buildings at the Salt Lake International Center Travelers now is receiving the rents from those properties already under an agreement with Triad America But the appointment of a receiver would have quickened the foreclosure proceeding Triad said And Travelers spokesman Allen Fletcher said “Foreclosure would have been the next step” Needs quire tax increases they went $177 million above the analyst and $9 million above Gov Norm Bangerter’s recommendations Committee members from the House agreed earlier that human needs must be met Rep Skousen explained “We were not Republicans or Democrats talking” he said “We were people who had a uniform common concern about the needs of people” “Be careful There is no way you’ll get $17 million” cautioned Sen John River City who is Holmgren the committee's If executive appropriations cuts the $177 million request Rep Skousen said subcommittee members will decide what budgets to cut LEGISLATIVE separa-tion-of-powe- FairPricins A bill 11111 designed to prevent gasoline 29" he said With local taxes added to retailers from underpricing their the $456900 elimination of 11 disproduct to the point of driving the tricts could result in $600000 less for competition out of business sailed administrative costs through a legislative committee Wednesday and will now be considThe legislator said administrative ered by the Senate costs are higher in small districts Senate Bill 111 seeks to clarify a test scores are generally lower in law passed in 1981 that prohibited small high schools and even greater retailers from selling their gasoline be effected could through savings below cost for the express product consolidation because there would be purpose of driving the competition no duplication in school building and of business out transportation costs That 1981 law was declared unconDiana Allison representing the stitutional in 3rd District Court last summer on the grounds it was too League of Women Voters of Utah said the League backed school disvague The proposed bill sponsored by trict reorganization (the euphemism Sen Dix McMullin more specifically Rep Burningham’s bill calls consolidefines what the retailer s cost would dation) but opposed "forced consolibe and it includes a provision that if dation without local assent " it is impossible to determine cost Celia Archibald a member of the then the retailer must sell his product loof Education agreed Weber Board a price at least 6 percent at cal school districts should lave a say what he paid for it from the in any consolidation scheme 17th Day SENATE Bills Passed HB2 (Hunter) Sets conditions for transdevelopferring Interests in time-shor- e ments and camp resorts By Senate 25-- 0 HB40 (Bishop) Allows state political-conventio- n delegates to vote In county blocs rather bv Individual secret bollots By Sen- ate 27-- 1 SB 19 (Carling) Specifies procedures for amending or vacating subdivision plats By Senate 27-SB61 (Cornaby) istration and filing Amends technical regprocedures related to and assumed names By corporations Senate 23-SB87 (Rogers Holmgren Rees) Require a match of county funds with state funds for alcohol and drug programs By Senate 23-- 4 SB88 (Rogers Holmgren Rees) Require local health departments to match a percentage of state funds for public health services By Senate 22-- 5 SB89 (Rogers Holmg-e- n Rees) Increase the matching requirement for state funds to mental health services By Senate 25-- 3 SB90 (Rogers Holmgren Rees) Establish criteria to be used In developing human services allocation formulas By Sen- ate 22-- Bills Introduced SB 149 (Barlow) Workers' Compensation Antidiscrimination Amendments SB 150 (Pace) Require renters and owners to maintain premises In tit condition SB151 (Pace) Provide for a fixed maximum finance charge on consumer credit transactions SB 152 (Rlchords) Provides for assessment ond taxation of mineral rights Resolutions Introduced SCR 2 (Rees) Resolutions concerning the of Health Institute National HOUSE Bills SBl (Rogers) Passed Changes provisions for real property conveyances token before officers In foreign countries By house 62-- SB 7 (Flnllnson) Allows third-clas- s cities en- ergy company they prohibited us from getting the funds to pay off the other creditors” Mr Miller said That is a more pervasive and subtle matter of exercising influence that cannot be addressed because of Committee Hacks end unnecessary school building and represents the sort of education reform needed in a state finding it increasingly difficult to fund education “By prohibiting the sale of the d Taken Yet By Peter Scarlet Tribune Education Editor J pepending on who's talking fithooi district consolidation is the JeSt education reform Utah can or it is a slap against traditional American values of local control and can damage education trate $177 Million Added f6r Human Wilkinson Sues 3 Lawmakers Who Work for State Continued From l she stressed "There are a doz- tru people or more on this House I 11 uncertainty about Triad’s Salt Lake International Center a mixed-us- e industrial park near the Salt Lake City International Airport He said “What was the ugliest part of the valley is now a very attractive mixed-use- d industrial park and we should be grateful” And Utah certainly benefits for having the three new buildings and the restored Devereaux Mansion at Triad Center he said The chamber official noted that some recent comments from community leaders about Triad's financial problems were “a little bit misguided As long as Triad America is the owner of record of the project we Sheraton obtained a temporary restraining order blocking the sale Dec 10 from a US District Court Magis- Cal-forn- Triad Energy Corp a Triad America subsidiary and parent company of Newedge had planned to sell Edgington to Skyhigh Resources Ltd a public company based in Vancouver British Columbia ! Triad Hotel Associates owns 75 percent and Essam Khashoggi Adnan’s brother owns 25 percent of the hotel Triad America agreed to unconditionally guarantee $10 million of the $152 million loan to Triad Hotel Associates and towns to consolidate voting districts for municipal elections By House 64-- 0 SB8 (Flnllnson) Modifies technical provisions of state election lows By House SB26 (Hillyard) Reforms statute of limiIn civil procedures related to Imprisonment os a legal disability and in civil r ghts actions By House 65-- 0 tations jB!3 (Corling) Extend "sunset" dates for expiration of various state agencies By House 57-- 0 SB50 (Cornaby) Recodl’lcation of state pension laws By House 66-- 0 SB60 (Cornaby) Clarifies duties of the legislative general counsel By House 62-- 3 SB69 (Hillyard) Phases In Title 59 recod-Iflcatlo- n By House 61-- 0 SB70 (Hillyard) Calls for uniform tax penalties By House 58-SB71 (Hillyard) Recodifies property tax statutes By House 65-- 1 SB72 (Hillyard) Recodifies statutes on the sales and use tax By House 64-SB73 (Hillyard) Recodifies motor fuel tax statutes By House 65-- 0 Bills Introduced HB182 (Redd) Repeals soles ond use tax exemption for pollution control equipment and property HB183 (Johnson) Makes the DUI fund port of the Reparations Act HB184 (Walker) Clarifies the duties of a Juvenile Court Guardian Ad Litem HB185 (Rushton) Specifies procedures and guidelines for private employers to conduct drug ond alcohol testing of employees HB186 (Wharton) Provides for the governor to convey Information to certain public officials on rodlatlon emanating from a Nevodo Test Site detonation HB187 (Bishop) Requires local school districts to consider total teochlng experience In contract negotiations HB188 (Christensen) Appropriates 5427500 to the Utah Geological and Mineral Survey from the general fund to reoccount funds place mlnerol-leas- e HB 189 (Rush) Appropriates 5105288 from the general fund to the Utah State Retirement Board to r1" tend members' monthly allowance |